Barnwell Industries, Inc. Reports Results for theQuarter and Nine Months Ended June 30, 2000.

Business Editors

HONOLULU--(BUSINESS WIRE)--AUG. 7, 2000

Barnwell Industries, Inc., (ASE-BRN), today reported net earnings of $720,000 ($0.53 per share - diluted) and $3,930,000 ($2.88 per share - diluted) for the three and nine months ended June 30, 2000, respectively, as compared

Morton H. Kinzler, Chairman and Chief Executive Officer of Barnwell, commented, "Net revenues have increased 40% and net earnings increased 620% for the three months ended June 30, 2000, as compared to the same period last year, due to significantly higher oil and natural gas prices. During the three months ended June 30, 2000, the Company had no revenues from its land investment segment.

"Net revenues and earnings increased significantly for the nine months ended June 30, 2000, due to significantly higher oil and natural gas prices and the exercise of a portion of the option granted in 1990 by Kaupulehu Developments, a 50.1% owned Hawaii general partnership, for the development of residential parcels within the Four Seasons Resort Hualalai at Historic Ka'upulehu. The exercise of this option resulted in pre-tax earnings to the Company, net of minority interest, of approximately $3,240,000. The remaining options outstanding to the developers of the Four Seasons Resort Hualalai expire within seven years. In addition, a 1,000 acre portion of Kaupulehu Developments' adjacent Lot 4 parcel is well positioned to move into a development phase as soon as a remaining legal issue is resolved.

"The Company invested $3,411,000 in oil and gas exploration and development during the nine months ended June 30, 2000, nearly quadrupling capital expenditures incurred over the same period last year, participating in the drilling of 26 successful gross wells, or 4.12 net wells, and the recompletion of 16 gross wells, or 2.35 net wells. In addition, the Company reduced its long-term debt by $3,630,000 or 25% and at June 30, 2000, had cash and cash equivalents of $6,580,000. During the month of June 2000, the Company repurchased 6,000 shares of its common stock on the open market for $93,000 under a March 2000 stock buyback plan authorizing the purchase of up to 100,000 shares. The Company plans to repurchase additional shares from time to time in the open market or in privately negotiated transactions, depending on market conditions.